Which of the Following Quotes Best Illustrates the Idea of Average

question 114

Multiple Choice

Which of the following quotes best illustrates the idea of average product?

• A)"If I have 10 workers on my assembly line,I can produce 13 tables a day."
• B)"If I add an 11th worker,I can produce 1 extra table a day."
• C)"Each worker produces 2 tables a day."
• D)"I find if I add an extra shift at night,table production only rises by 80 percent because I need more maintenance time on the assembly line."
• E)"If I double workers and double the assembly line,I can make 120 percent more tables."

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Definitions:

Standard Direct Materials

The budgeted cost for direct materials which are the raw materials that can be directly attributed to the production of goods, used for budgeting and performance evaluation.

Actual Materials Price

The real cost incurred to acquire materials used in the production process, as opposed to the budgeted or standard cost.

Standard Price

A predetermined cost assigned to materials, used for budgeting and variance analysis.

Standard Direct Materials

The predetermined cost and quantity of raw materials required for the production of a unit of product under normal conditions.